What if my startup (S-corp) was formed later in the year, August, and didn't make profits. Or when does a company start payroll if it isn't profitable, initially?
What if you're *not an employee* ? My mother owns the majority stake in a family business S Corp and she does nothing in it. The accounting, the administration, 100% of all duties are hired out to actual employees.
Man, it's so much more overwhelming than I ever imagined. You come up with an idea, make a plan, buy a domain, supplies, etc, but then you're faced with deciding how to structure the company, and it's daunting. I appreciate videos like this, as I have never owned a business and am starting one now. I just have no idea about what I should do lol.
Will, when you file DBA certificate to your county, did they not hook you up with local retired biz people for free advice? Or can you network somehow? You are not alone, many people willing to help you with their insights, be creative and seek out a mentor....
Excellent. I have been in business for many years and I must say this speaker is quite knowledgeable. He provides quite valuable information for anyone starting a company or operating one.
Just wanted to let you know that we officially released our first online course called Bootcamp for S-Corps where we teach you everything you need to know for S-Corp (we will be adding more section to the existing course over the next weeks). Enjoy! bootcamp.advisorfi.com/p/s-corporation-bootcamp
He did the hard part. Reasonable compensation is a subject you cant find much information on. However fines/penalties from the IRS are available on their website.
What if the S-corp is not yet making a profit? Are we required to still pay our selves? Or what if the profits cannot sustain minimum wage at the beginning? Can you pay your self incrementally? That is, pay $2 an hour, and increase until you get to your reasonable salary as profit increases.???
Just wanted to let you know that we officially released our first online course called Bootcamp for S-Corps where we teach you everything you need to know for S-Corp (we will be adding more section to the existing course over the next weeks). Enjoy! bootcamp.advisorfi.com/p/s-corporation-bootcamp
thank you so much, all your videos on S-Corps helped me so much. The way you broke it down made it so simple to understand. Quick question, if i become a S-corp do i have to add myself to payroll? or do i just put my income on my W-2 on the S-Corp section?
Just wanted to let you know that we officially released our first online course called Bootcamp for S-Corps where we teach you everything you need to know for S-Corp (we will be adding more section to the existing course over the next weeks). Enjoy! bootcamp.advisorfi.com/p/s-corporation-bootcamp
Just wanted to let you know that we officially released our first online course called Bootcamp for S-Corps where we teach you everything you need to know for S-Corp (we will be adding more section to the existing course over the next weeks). Enjoy! bootcamp.advisorfi.com/p/s-corporation-bootcamp
Just wanted to let you know that we officially released our first online course called Bootcamp for S-Corps where we teach you everything you need to know for S-Corp (we will be adding more section to the existing course over the next weeks). Enjoy! bootcamp.advisorfi.com/p/s-corporation-bootcamp
By November or December, you have a ballpark figure, and you can elect s corp taxation back one year. You can use a host of reasonable standards. Also, begin making adjustments via bonuses and the like as situation develops, there are midstream adjustments you can make. Document your reasons and back them up with evidence. The law does not expect perfect powers of prediction, just use reasonable standards and adjust as reality develops....
Thank you for putting your energy an time to inform and get more conciousness about how to stay informed and keep yourself in line with what laws request!!!
Just wanted to let you know that we officially released our first online course called Bootcamp for S-Corps where we teach you everything you need to know for S-Corp (we will be adding more section to the existing course over the next weeks). Enjoy! bootcamp.advisorfi.com/p/s-corporation-bootcamp
Charlie Becker I am wondering if you didn't watch the whole thing? I found the explanation in the middle to be very clear and answered my questions. I would trim the first several minutes off the video and you have solid advice.
teresajanay great question! Generally, yes. Remember that the term “reasonable” means, well, reasonable. If you can’t afford a modest salary and all you can do is work within your means, that’s reasonable. But be sure to seek the advice of a tax professional for more detailed responses. Best of luck!
Just wanted to let you know that we officially released our first online course called Bootcamp for S-Corps where we teach you everything you need to know for S-Corp (we will be adding more section to the existing course over the next weeks). Enjoy! bootcamp.advisorfi.com/p/s-corporation-bootcamp
@@AdvisorfiTV That was a great question. It deserves a more thorough answer. I've researched this exact question and am surprised at the lack of guidance on this.
I recently opened my S-corp with my account and am in the step of setting up Payroll. I must say this video is SO HELPFUL in my understanding on how to decide my RC and avoid IRS audits/troubles. Thank you so much for creating this video!!!
Hey Kian, all net income (i.e., dividends) that pass through the S corp to your personal return is ALL taxed at the Ordinary Income level: www.irs.gov/businesses/small-businesses-self-employed/s-corporations
Just wanted to let you know that we officially released our first online course called Bootcamp for S-Corps where we teach you everything you need to know for S-Corp (we will be adding more section to the existing course over the next weeks). Enjoy! bootcamp.advisorfi.com/p/s-corporation-bootcamp
hi so the Score compensation , is there a specific Time during the year to make it?I will write myself a business check and deposit to my personal account.Once that is done how do I document that on payroll? Cheers and thanks for the valuable information
Couldn't agree more with your sentiment. It's insane that this stuff isn't covered in school... But then, if it were, there would be many many more businesses, and many less "employees" willing to waste their lives working to pay the debts of these private equity, ATM for the rich, debt firms.
So you pay yourself little and leave money in the company in order to build it up, maybe even your employees are making more than you, and you get flagged by the IRS For fraud? Ridiculous.
Just wanted to let you know that we officially released our first online course called Bootcamp for S-Corps where we teach you everything you need to know for S-Corp (we will be adding more section to the existing course over the next weeks). Enjoy! bootcamp.advisorfi.com/p/s-corporation-bootcamp
This was very helpful. I will not insult people for the comments the way that I would like. I guess everyone has a different way of understanding and learning. Thank you
Thanks! Glad we can help. Be sure to watch the top 4 deductions as an S-Corp ua-cam.com/video/mUSJvb4Q1iY/v-deo.html also be sure to subscribe as we will release weekly come 2018. Happy new year!!
Just wanted to let you know that we officially released our first online course called Bootcamp for S-Corps where we teach you everything you need to know for S-Corp (we will be adding more section to the existing course over the next weeks). Enjoy! bootcamp.advisorfi.com/p/s-corporation-bootcamp
What about husband and wife own a salon. Wife works at the salon husband does not. What type of salary is reasonable for the husband in this situation?
Thanks for watching. Don't forget to subscribe for more. Read more here: www.irs.gov/businesses/small-businesses-self-employed/s-corporation-compensation-and-medical-insurance-issues
He is one in a million, best among many, most trusted , I almost gave up on trading then I met him through a friend, Austin is the most trusted trading expert who helped the life of my family and I ,.
Hi love the info of your videos! Q. Is reasonable compensation from the company only based on the yearly income of the s Corp? What if each year the s corp grows its savings to $1mil over a couple years. Is the reasonable compensation based off that because it has money in it?
Just wanted to let you know that we officially released our first online course called Bootcamp for S-Corps where we teach you everything you need to know for S-Corp (we will be adding more section to the existing course over the next weeks). Enjoy! bootcamp.advisorfi.com/p/s-corporation-bootcamp
It's smart to keep learning, so that am on the rightside Honesty is the best policy be blessed everyone and i pray foe all to have a loving holiday with your family
Great question Jasmine! This is at your discretion (daily, weekly, bi-weekly, bi-monthly, monthly, quarterly, annually, etc.) but remember the filing requirements are still the same, quarterly filings, etc., Just because you pay yourself less often doesn't mean the filing requirements ease up. Here is more information about that: www.irs.gov/businesses/small-businesses-self-employed/depositing-and-reporting-employment-taxes best of luck!
What if my "job" with my S-Corp LLC is simply checking my bank account to verify a direct deposit rent payment? What is a reasonable compensation for 10 minutes of work, once a month?
Administrative job that requires trust of owner and other skills, such as computer skills, communication, confidentiality. How much would you have to pay an outsider to do this, and buy or lease the related technology? Also, your availability to deal with problems is worth something, is it not? An educated, skilled person does not just appear, consider if you had to get someone else to do this....
excellent video. really appreciate it. my question is, if the profits/distribution gets no SE tax, does that money stay in the company, are can I get it back as a shareholder of the company? more power to you guys!
Thanks for watching. Don't forget to subscribe for more. Owners of S-Corps can take distributions or draws of the cash to their personal account. Read more here: www.irs.gov/businesses/small-businesses-self-employed/s-corporation-employees-shareholders-and-corporate-officers
Great to hear! We are located in South Florida, but we are considered a cloud-based accounting firm which means we work with business owners all across the United States (32 states as of now). So no matter where you are, we can help and be worked with really nicely. Thx for asking!
Just wanted to let you know that we officially released our first online course called Bootcamp for S-Corps where we teach you everything you need to know for S-Corp (we will be adding more section to the existing course over the next weeks). Enjoy! bootcamp.advisorfi.com/p/s-corporation-bootcamp
Thanks for watching. Don't forget to subscribe for more. Owners of S-Corps can take distributions or draws of the cash to their personal account. Read more here: www.irs.gov/businesses/small-businesses-self-employed/s-corporation-employees-shareholders-and-corporate-officers
Big question on the reasonable salary vs distribution for red flag - What if I have a full time job and running side business that dont need extra big salary??
Thanks for watching. Don't forget to subscribe for more. I would contact a local tax professional to help tailor a personal tax plan which speaks to that.
Hey Jorge, great question! The S-Corp election does not discriminate on the type of industry you are in, it works for anyone who is eligible to elect it. So, yes if you have a vending machine business there is nothing wrong with making the s-corp election. Once you make the election, yes, you will need to pay yourself a reasonable salary and are allowed to take distributions. Obviously, be sure to run things past your accountant for more detailed information. If you are late in making the election or you need help in general in making the election, you can check out our course: bootcamp.advisorfi.com/p/s-corporation-bootcamp best of luck!
As an LLC elected as an S Corp, do I (the officer) have to be on payroll or can I have one employee on payroll and just pay myself via owner distributions?
BJJGarage all officers must pay themselves a reasonable salary. Glad we can helped. Be sure to watch the top 4 deductions as an SCorp ua-cam.com/video/mUSJvb4Q1iY/v-deo.html also be sure to subscribe as we will release weekly come 2018
Just wanted to let you know that we officially released our first online course called Bootcamp for S-Corps where we teach you everything you need to know for S-Corp (we will be adding more section to the existing course over the next weeks). Enjoy! bootcamp.advisorfi.com/p/s-corporation-bootcamp
How much of this applies to retired writer on Disability? I thought I just "needed" an LLC, and then could pay whatever is below the maximum allowed while on Disability.
Hi there, if you are referring to how much do accountants charge for helping you with Form 2553, it varies. Sometimes the price can range between $500-$5,000 depending on the professional. We built an affordable course to help you with this process: bootcamp.advisorfi.com/p/s-corporation-bootcamp
Just wanted to let you know that we officially released our first online course called Bootcamp for S-Corps where we teach you everything you need to know for S-Corp (we will be adding more section to the existing course over the next weeks). Enjoy! bootcamp.advisorfi.com/p/s-corporation-bootcamp
GREAT STUFF!!Pregunta,What would happen if you have a Job in which you receive a W-2 and pay medicare,Federal income tax and social security.On my "Resonable Salary" would I still have to pay Social security and medicare?And would a S-would be the best option? Thank you
Great job and thanks for the video mah dude. Question: If I have 3 partners who all have equal share of the LLC and file as an S-Corp, as the only shareholder maintaining the project, when I pay myself a reasonable wage and get taxed for it, does this reduce my shareholder distribution? I don't believe so but I thought I had read somewhere that part of my 33% distribution gets reduced by the amount I declare as "reasonable wage." If not, cool. But if so, isn't this unfair as a shareholder as I'm the only person working the project (whereas the others are silent partners) but I get penalized for it? Thanks!
Karolyna B. Great question! The IRS requires all shareholder-employee to pay themselves a reasonable Form W2 wage. It cannot by through Form 1099. Best of luck!
Just wanted to let you know that we officially released our first online course called Bootcamp for S-Corps where we teach you everything you need to know for S-Corp (we will be adding more section to the existing course over the next weeks). Enjoy! bootcamp.advisorfi.com/p/s-corporation-bootcamp
What If an S-corp single owner/employee takes distributions throughout the year but does not set up payroll or file/pay payroll taxes, how do you reclass distributions to wages for the previous year? Also how do you go back and pay the 940/941?
At first, I thought it was generally what someone gets paid in the field and it is way lower than what I am getting now in my 9 to 5 and credentials so I was going to just stay a basic LLC, but based on what you are saying if my net and/or distribution is high, makes a difference and I can pay myself higher. How about if you wear more than one hat in your business, such as the director, submitting payroll, marketing etc...what job title is that? Should you pay yourself separately for each lol..I know that would be red flags. I will watch you other videos, but it sounds it is a balancing act. Do you need to show what you use your distributions on? How about owners who are rarely at their businesses and have others run it, but get a salary?
Just wanted to let you know that we officially released our first online course called Bootcamp for S-Corps where we teach you everything you need to know for S-Corp (we will be adding more section to the existing course over the next weeks). Enjoy! bootcamp.advisorfi.com/p/s-corporation-bootcamp
Robert Lee James Welch Great question! The answer is Yes but if the owner uses the property and assets for personal use he/she may have that activity tagged as a fringe benefit which is taxable event www.irs.gov/businesses/corporations/executive-compensation-fringe-benefits-audit-techniques-guide-02-2005
Just wanted to let you know that we officially released our first online course called Bootcamp for S-Corps where we teach you everything you need to know for S-Corp (we will be adding more section to the existing course over the next weeks). Enjoy! bootcamp.advisorfi.com/p/s-corporation-bootcamp
My employer is going to employ me under form 1099 (sub contractor) and the company he works for requires me to also apply a W-9 form and a general application for employment as well. you say W-2 but all I'm seeing is a W-9 form. Any idea?
Just wanted to let you know that we officially released our first online course called Bootcamp for S-Corps where we teach you everything you need to know for S-Corp (we will be adding more section to the existing course over the next weeks). Enjoy! bootcamp.advisorfi.com/p/s-corporation-bootcamp
From HopeExperience: "What if the S-corp is not yet making a profit? Are we required to still pay our selves? Or what if the profits cannot sustain minimum wage at the beginning? Can you pay your self incrementally? That is, pay $2 an hour, and increase until you get to your reasonable salary as profit increases.???" The question is if my S Corp did not make any money this year, how the freak do I pay myself? Where is that compensation coming from? What to do in that case? Sunk cost, no profit; is this reasonable? Mmmmm.... Pay myself $30k from nothing? The efforts are there, the money is not...... What to do then? Mmmmm..... if minimum wage, from where do I get the money to pay me minimum wage?
Just wanted to let you know that we officially released our first online course called Bootcamp for S-Corps where we teach you everything you need to know for S-Corp (we will be adding more section to the existing course over the next weeks). Enjoy! bootcamp.advisorfi.com/p/s-corporation-bootcamp
Just wanted to let you know that we officially released our first online course called Bootcamp for S-Corps where we teach you everything you need to know for S-Corp (we will be adding more section to the existing course over the next weeks). Enjoy! bootcamp.advisorfi.com/p/s-corporation-bootcamp
Just wanted to let you know that we officially released our first online course called Bootcamp for S-Corps where we teach you everything you need to know for S-Corp (we will be adding more section to the existing course over the next weeks). Enjoy! bootcamp.advisorfi.com/p/s-corporation-bootcamp
Just wanted to let you know that we officially released our first online course called Bootcamp for S-Corps where we teach you everything you need to know for S-Corp (we will be adding more section to the existing course over the next weeks). Enjoy! bootcamp.advisorfi.com/p/s-corporation-bootcamp
Thanks for Watching, Gusto Payroll (CLICK☞): gusto.com/r/uBiOb
1:30 Why Pay Yourself?
4:40 Reasonable Compensation?
6:00 What is Reasonable Compensation?
8:00 Why Must I Pay Myself?
10:50 Reasonable Comp Factors?
17:10 IRS Red Flags?
23:00 Surviving an IRS Challenge?
24:40 My Opinion.
30:00 Gusto Payroll Recommendation.
Subscribe (CLICK☞): goo.gl/o8hRuk
What if my startup (S-corp) was formed later in the year, August, and didn't make profits. Or when does a company start payroll if it isn't profitable, initially?
thank you
advisorfi.com Great advice every bit thank you so much
instablaster...
What if you're *not an employee* ?
My mother owns the majority stake in a family business S Corp and she does nothing in it.
The accounting, the administration, 100% of all duties are hired out to actual employees.
Answer doesn't start until minute 8 bascialy: figure it out on your own.
You Rock! thank you!
ugh, thank you. Basically, this video doesn't tell you how to calculate HOW MUCH to pay yourself.
Man, it's so much more overwhelming than I ever imagined. You come up with an idea, make a plan, buy a domain, supplies, etc, but then you're faced with deciding how to structure the company, and it's daunting. I appreciate videos like this, as I have never owned a business and am starting one now. I just have no idea about what I should do lol.
Will, when you file DBA certificate to your county, did they not hook you up with local retired biz people for free advice? Or can you network somehow? You are not alone, many people willing to help you with their insights, be creative and seek out a mentor....
Excellent. I have been in business for many years and I must say this speaker is quite knowledgeable. He provides quite valuable information for anyone starting a company or operating one.
Daramy thanks for the awesome feedback! We appreciate it. Be sure to subscribe for more future videos.
Just wanted to let you know that we officially released our first online course called Bootcamp for S-Corps where we teach you everything you need to know for S-Corp (we will be adding more section to the existing course over the next weeks). Enjoy! bootcamp.advisorfi.com/p/s-corporation-bootcamp
Sounds like I will be hiring a good accountant and lawyer.
Would have been nice if you gave us some idea of what those penalties, interest and fines amount to.
He did the hard part. Reasonable compensation is a subject you cant find much information on. However fines/penalties from the IRS are available on their website.
Come on man you’re spending the first half of the video saying the same thing over and over again
Lol
What if the S-corp is not yet making a profit? Are we required to still pay our selves? Or what if the profits cannot sustain minimum wage at the beginning? Can you pay your self incrementally? That is, pay $2 an hour, and increase until you get to your reasonable salary as profit increases.???
Just wanted to let you know that we officially released our first online course called Bootcamp for S-Corps where we teach you everything you need to know for S-Corp (we will be adding more section to the existing course over the next weeks). Enjoy! bootcamp.advisorfi.com/p/s-corporation-bootcamp
HopeExperience A very valid question!
Following
Still no answer
@@iamOAKland I never find the answer to this from ANYWHERE. I don't think they want to answer until you pay them for the answer
thank you so much, all your videos on S-Corps helped me so much. The way you broke it down made it so simple to understand. Quick question, if i become a S-corp do i have to add myself to payroll? or do i just put my income on my W-2 on the S-Corp section?
Hey Fellipe, if you are the shareholder-employee of the S-Corp, then yes. You have to treat yourself as an employee. Hope this helps!
Just wanted to let you know that we officially released our first online course called Bootcamp for S-Corps where we teach you everything you need to know for S-Corp (we will be adding more section to the existing course over the next weeks). Enjoy! bootcamp.advisorfi.com/p/s-corporation-bootcamp
Do previous salarys matter e.g. say my work history shows annual pay 150k ... but i now pay myself 70k for example
Will great videos! Set up is great and the information is super practical.
Yo Robert! Thanks for watching. Be sure to subscribe for more videos. Great to hear from you!!
Just wanted to let you know that we officially released our first online course called Bootcamp for S-Corps where we teach you everything you need to know for S-Corp (we will be adding more section to the existing course over the next weeks). Enjoy! bootcamp.advisorfi.com/p/s-corporation-bootcamp
Get to the point, son. You gotta a lotta great info here.
There is no definite answer to what is reasonable
topchoice32 indeed. But there are always good and educated calculations. Best of luck in your business venture!
Just wanted to let you know that we officially released our first online course called Bootcamp for S-Corps where we teach you everything you need to know for S-Corp (we will be adding more section to the existing course over the next weeks). Enjoy! bootcamp.advisorfi.com/p/s-corporation-bootcamp
I still don't see how you can "know" how much money you will make in a year, before it happens.
By November or December, you have a ballpark figure, and you can elect s corp taxation back one year. You can use a host of reasonable standards. Also, begin making adjustments via bonuses and the like as situation develops, there are midstream adjustments you can make. Document your reasons and back them up with evidence. The law does not expect perfect powers of prediction, just use reasonable standards and adjust as reality develops....
You don’t need to know how much money you’ll make in advance.
If I have several S Corp in the same line of business (rental properties) and personal own rentals do I need a payroll for each
Thank you for putting your energy an time to inform and get more conciousness about how to stay informed and keep yourself in line with what laws request!!!
Wordy and repetitive, after 10 minutes we still don't know what reasonable means
Just wanted to let you know that we officially released our first online course called Bootcamp for S-Corps where we teach you everything you need to know for S-Corp (we will be adding more section to the existing course over the next weeks). Enjoy! bootcamp.advisorfi.com/p/s-corporation-bootcamp
Exactly stupid video, it's an advertisement...
Talks like Donald Trump... very repetitive. Couldn't finish the video
Charlie Becker I am wondering if you didn't watch the whole thing? I found the explanation in the middle to be very clear and answered my questions. I would trim the first several minutes off the video and you have solid advice.
Do I still pay myself even if I didn't make enough money to cover the salary?
teresajanay great question! Generally, yes. Remember that the term “reasonable” means, well, reasonable. If you can’t afford a modest salary and all you can do is work within your means, that’s reasonable. But be sure to seek the advice of a tax professional for more detailed responses. Best of luck!
Just wanted to let you know that we officially released our first online course called Bootcamp for S-Corps where we teach you everything you need to know for S-Corp (we will be adding more section to the existing course over the next weeks). Enjoy! bootcamp.advisorfi.com/p/s-corporation-bootcamp
@@AdvisorfiTV That was a great question. It deserves a more thorough answer. I've researched this exact question and am surprised at the lack of guidance on this.
Could you lower your wage safely providing that you are employed maximizing reinvestment in your new business?
I recently opened my S-corp with my account and am in the step of setting up Payroll. I must say this video is SO HELPFUL in my understanding on how to decide my RC and avoid IRS audits/troubles. Thank you so much for creating this video!!!
Hi - what if you income was $15K your expenses added up to $14K, now you are left with $1K - should I be calculating Reasonable compensation?
Question -- as a shareholder how are my dividends taxed after I receive them from the S-Corp? Surely dividends aren't completely tax-free?
Hey Kian, all net income (i.e., dividends) that pass through the S corp to your personal return is ALL taxed at the Ordinary Income level: www.irs.gov/businesses/small-businesses-self-employed/s-corporations
Just wanted to let you know that we officially released our first online course called Bootcamp for S-Corps where we teach you everything you need to know for S-Corp (we will be adding more section to the existing course over the next weeks). Enjoy! bootcamp.advisorfi.com/p/s-corporation-bootcamp
my wife is 50/50 owner in my S-Corp, however she is uninvolved.....can i still put her on w2 payroll?
hi so the Score compensation , is there a specific Time during the year to make it?I will write myself a business check and deposit to my personal account.Once that is done how do I document that on payroll? Cheers and thanks for the valuable information
Why is none of this taught in school?
Couldn't agree more with your sentiment. It's insane that this stuff isn't covered in school... But then, if it were, there would be many many more businesses, and many less "employees" willing to waste their lives working to pay the debts of these private equity, ATM for the rich, debt firms.
It's taught in Corporations in law school
Tax pros know about this but, in general, personal finance/taxes need to be taught more in high schools.
So you pay yourself little and leave money in the company in order to build it up, maybe even your employees are making more than you, and you get flagged by the IRS For fraud? Ridiculous.
Awesome video. I know people wanted a fixed answer but it really helped to see the range within "reasonable".
Just wanted to let you know that we officially released our first online course called Bootcamp for S-Corps where we teach you everything you need to know for S-Corp (we will be adding more section to the existing course over the next weeks). Enjoy! bootcamp.advisorfi.com/p/s-corporation-bootcamp
Man! Your breakdowns are so helpful! Thank you!
Thank you Susie! Feel free to subscribe for more videos as we release them. Best of luck!
This was very helpful. I will not insult people for the comments the way that I would like. I guess everyone has a different way of understanding and learning. Thank you
Thanks! Glad we can help. Be sure to watch the top 4 deductions as an S-Corp ua-cam.com/video/mUSJvb4Q1iY/v-deo.html also be sure to subscribe as we will release weekly come 2018. Happy new year!!
Just wanted to let you know that we officially released our first online course called Bootcamp for S-Corps where we teach you everything you need to know for S-Corp (we will be adding more section to the existing course over the next weeks). Enjoy! bootcamp.advisorfi.com/p/s-corporation-bootcamp
What about husband and wife own a salon. Wife works at the salon husband does not. What type of salary is reasonable for the husband in this situation?
Thanks for watching. Don't forget to subscribe for more. Read more here: www.irs.gov/businesses/small-businesses-self-employed/s-corporation-compensation-and-medical-insurance-issues
He is one in a million, best among many, most trusted , I almost gave up on trading then I met him through a friend, Austin is the most trusted trading expert who helped the life of my family and I ,.
Hi love the info of your videos! Q. Is reasonable compensation from the company only based on the yearly income of the s Corp? What if each year the s corp grows its savings to $1mil over a couple years. Is the reasonable compensation based off that because it has money in it?
Great information. You have just earned yourself a new subscriber
Just wanted to let you know that we officially released our first online course called Bootcamp for S-Corps where we teach you everything you need to know for S-Corp (we will be adding more section to the existing course over the next weeks). Enjoy! bootcamp.advisorfi.com/p/s-corporation-bootcamp
It's smart to keep learning, so that am on the rightside Honesty is the best policy be blessed everyone and i pray foe all to have a loving holiday with your family
How often do I need to pay myself? Can I pay myself once, at the end of every quarter?
Great question Jasmine! This is at your discretion (daily, weekly, bi-weekly, bi-monthly, monthly, quarterly, annually, etc.) but remember the filing requirements are still the same, quarterly filings, etc., Just because you pay yourself less often doesn't mean the filing requirements ease up. Here is more information about that: www.irs.gov/businesses/small-businesses-self-employed/depositing-and-reporting-employment-taxes best of luck!
That's a great question I also had a similar thought
You Break it down so well ! thank you !
What if my "job" with my S-Corp LLC is simply checking my bank account to verify a direct deposit rent payment? What is a reasonable compensation for 10 minutes of work, once a month?
Administrative job that requires trust of owner and other skills, such as computer skills, communication, confidentiality. How much would you have to pay an outsider to do this, and buy or lease the related technology? Also, your availability to deal with problems is worth something, is it not? An educated, skilled person does not just appear, consider if you had to get someone else to do this....
excellent video. really appreciate it. my question is, if the profits/distribution gets no SE tax, does that money stay in the company, are can I get it back as a shareholder of the company? more power to you guys!
Thanks for watching. Don't forget to subscribe for more. Owners of S-Corps can take distributions or draws of the cash to their personal account. Read more here: www.irs.gov/businesses/small-businesses-self-employed/s-corporation-employees-shareholders-and-corporate-officers
Very helpful. Where is your firm located?
Great to hear! We are located in South Florida, but we are considered a cloud-based accounting firm which means we work with business owners all across the United States (32 states as of now). So no matter where you are, we can help and be worked with really nicely. Thx for asking!
Just wanted to let you know that we officially released our first online course called Bootcamp for S-Corps where we teach you everything you need to know for S-Corp (we will be adding more section to the existing course over the next weeks). Enjoy! bootcamp.advisorfi.com/p/s-corporation-bootcamp
so its called "S corp" status even though it would be elected on an LLC?
But what do you do with the money that stays in the S Corp? It's just tied up in a business checking account?
Thanks for watching. Don't forget to subscribe for more. Owners of S-Corps can take distributions or draws of the cash to their personal account. Read more here: www.irs.gov/businesses/small-businesses-self-employed/s-corporation-employees-shareholders-and-corporate-officers
Big question on the reasonable salary vs distribution for red flag -
What if I have a full time job and running side business that dont need extra big salary??
Thanks for watching. Don't forget to subscribe for more. I would contact a local tax professional to help tailor a personal tax plan which speaks to that.
AWESOME VIDEO, THANKS!
Is a Single member LLC elected as an S-Corp ok for a vending machine business? Would it be ok if I pay myself a reasonable salary and Distributions?
Hey Jorge, great question! The S-Corp election does not discriminate on the type of industry you are in, it works for anyone who is eligible to elect it. So, yes if you have a vending machine business there is nothing wrong with making the s-corp election. Once you make the election, yes, you will need to pay yourself a reasonable salary and are allowed to take distributions. Obviously, be sure to run things past your accountant for more detailed information. If you are late in making the election or you need help in general in making the election, you can check out our course: bootcamp.advisorfi.com/p/s-corporation-bootcamp best of luck!
Anderson’s Advisors will give you a better answer
Lots of good information!
As an LLC elected as an S Corp, do I (the officer) have to be on payroll or can I have one employee on payroll and just pay myself via owner distributions?
BJJGarage all officers must pay themselves a reasonable salary. Glad we can helped. Be sure to watch the top 4 deductions as an SCorp ua-cam.com/video/mUSJvb4Q1iY/v-deo.html also be sure to subscribe as we will release weekly come 2018
Just wanted to let you know that we officially released our first online course called Bootcamp for S-Corps where we teach you everything you need to know for S-Corp (we will be adding more section to the existing course over the next weeks). Enjoy! bootcamp.advisorfi.com/p/s-corporation-bootcamp
Wow, thank you so much for this.
Ok, maybe 15 minutes lol
How much of this applies to retired writer on Disability? I thought I just "needed" an LLC, and then could pay whatever is below the maximum allowed while on Disability.
How much do accountants charge for this?
Hi there, if you are referring to how much do accountants charge for helping you with Form 2553, it varies. Sometimes the price can range between $500-$5,000 depending on the professional. We built an affordable course to help you with this process: bootcamp.advisorfi.com/p/s-corporation-bootcamp
Great video, thank you!
Dawn McMenamy thanks Dawn! Be sure to subscribe for future videos. Best of luck in your business ventures!
Just wanted to let you know that we officially released our first online course called Bootcamp for S-Corps where we teach you everything you need to know for S-Corp (we will be adding more section to the existing course over the next weeks). Enjoy! bootcamp.advisorfi.com/p/s-corporation-bootcamp
GREAT STUFF!!Pregunta,What would happen if you have a Job in which you receive a W-2 and pay medicare,Federal income tax and social security.On my "Resonable Salary" would I still have to pay Social security and medicare?And would a S-would be the best option? Thank you
Great job and thanks for the video mah dude. Question: If I have 3 partners who all have equal share of the LLC and file as an S-Corp, as the only shareholder maintaining the project, when I pay myself a reasonable wage and get taxed for it, does this reduce my shareholder distribution? I don't believe so but I thought I had read somewhere that part of my 33% distribution gets reduced by the amount I declare as "reasonable wage." If not, cool. But if so, isn't this unfair as a shareholder as I'm the only person working the project (whereas the others are silent partners) but I get penalized for it? Thanks!
does it has to be a w2 for a shareholder-employee comp. can it be a 1099misc ?
Karolyna B. Great question! The IRS requires all shareholder-employee to pay themselves a reasonable Form W2 wage. It cannot by through Form 1099. Best of luck!
Just wanted to let you know that we officially released our first online course called Bootcamp for S-Corps where we teach you everything you need to know for S-Corp (we will be adding more section to the existing course over the next weeks). Enjoy! bootcamp.advisorfi.com/p/s-corporation-bootcamp
Amazing video
“Let me tell you how to determine reasonable compensation.” Followed directly by
“The IRS definition of an S-Corp is.”
This was a waste of 30 minutes
Very informative and helpful. Thank you. Loved this video.
What If an S-corp single owner/employee takes distributions throughout the year but does not set up payroll or file/pay payroll taxes, how do you reclass distributions to wages for the previous year? Also how do you go back and pay the 940/941?
At first, I thought it was generally what someone gets paid in the field and it is way lower than what I am getting now in my 9 to 5 and credentials so I was going to just stay a basic LLC, but based on what you are saying if my net and/or distribution is high, makes a difference and I can pay myself higher. How about if you wear more than one hat in your business, such as the director, submitting payroll, marketing etc...what job title is that? Should you pay yourself separately for each lol..I know that would be red flags. I will watch you other videos, but it sounds it is a balancing act. Do you need to show what you use your distributions on? How about owners who are rarely at their businesses and have others run it, but get a salary?
Do I need to be an llc if I’m a sole pro independent contractor and it’s just me to elect S Corp?
Hey Eric, great question! Yes, you need to have formed either an LLC or an INC in order for that LLC / INC to elect S-Corp status. Best of luck!
Just wanted to let you know that we officially released our first online course called Bootcamp for S-Corps where we teach you everything you need to know for S-Corp (we will be adding more section to the existing course over the next weeks). Enjoy! bootcamp.advisorfi.com/p/s-corporation-bootcamp
Great content!
Very impressive. But can't the corporation purchase property and assets that the owner may use?
Robert Lee James Welch Great question! The answer is Yes but if the owner uses the property and assets for personal use he/she may have that activity tagged as a fringe benefit which is taxable event www.irs.gov/businesses/corporations/executive-compensation-fringe-benefits-audit-techniques-guide-02-2005
Just wanted to let you know that we officially released our first online course called Bootcamp for S-Corps where we teach you everything you need to know for S-Corp (we will be adding more section to the existing course over the next weeks). Enjoy! bootcamp.advisorfi.com/p/s-corporation-bootcamp
I'm interested in your services
You repeated the same thing in different ways without answering any questions the entire time. Are you practicing running for public office?
So you're saying you should do a wages:distribution of 1:1. I've been doing 1:2. Is that likely to trigger an audit?
Hello, where can we maybe schedule a consultation with you? online? prices? thanks!
12 mins of rambling
What if your company hasn't made a profit, yet? It doesn't make sense to loan my company money just to pay myself to pay taxes.
You won’t need to.
My employer is going to employ me under form 1099 (sub contractor) and the company he works for requires me to also apply a W-9 form and a general application for employment as well. you say W-2 but all I'm seeing is a W-9 form. Any idea?
A worker is an employee or independent contractor....not both.
Good video. Very informative BUT it could have been done in a 5 minute vid.
hardmf247 thanks for watching!! 🎥🤓
Just wanted to let you know that we officially released our first online course called Bootcamp for S-Corps where we teach you everything you need to know for S-Corp (we will be adding more section to the existing course over the next weeks). Enjoy! bootcamp.advisorfi.com/p/s-corporation-bootcamp
I need your help
Very helpful thanks alot
thank you!
Great video
How i pay my self w2?.llc or corp
How i pay my self w2?
THIS MADE SOOOOO MUCH SENSE! DOUBLE LIKED(from other account)LOL THANK YOU
Thanks so much for watching Ely! :)
From HopeExperience: "What if the S-corp is not yet making a profit? Are we required to still pay our selves? Or what if the profits cannot sustain minimum wage at the beginning? Can you pay your self incrementally? That is, pay $2 an hour, and increase until you get to your reasonable salary as profit increases.???" The question is if my S Corp did not make any money this year, how the freak do I pay myself? Where is that compensation coming from? What to do in that case? Sunk cost, no profit; is this reasonable? Mmmmm.... Pay myself $30k from nothing? The efforts are there, the money is not...... What to do then? Mmmmm..... if minimum wage, from where do I get the money to pay me minimum wage?
Just wanted to let you know that we officially released our first online course called Bootcamp for S-Corps where we teach you everything you need to know for S-Corp (we will be adding more section to the existing course over the next weeks). Enjoy! bootcamp.advisorfi.com/p/s-corporation-bootcamp
If you own several LLCs running as Scorp do you have to pay yourself W2 earning from Each one?
Just wanted to let you know that we officially released our first online course called Bootcamp for S-Corps where we teach you everything you need to know for S-Corp (we will be adding more section to the existing course over the next weeks). Enjoy! bootcamp.advisorfi.com/p/s-corporation-bootcamp
🖒
Just wanted to let you know that we officially released our first online course called Bootcamp for S-Corps where we teach you everything you need to know for S-Corp (we will be adding more section to the existing course over the next weeks). Enjoy! bootcamp.advisorfi.com/p/s-corporation-bootcamp
I thought this was a white dude until I looked.😀
Good info! Well done and he comes across very knowledgeable and candid.
Thanks for watching. Be sure to subscribe for more videos and more advice: goo.gl/o8hRuk
Just wanted to let you know that we officially released our first online course called Bootcamp for S-Corps where we teach you everything you need to know for S-Corp (we will be adding more section to the existing course over the next weeks). Enjoy! bootcamp.advisorfi.com/p/s-corporation-bootcamp